Texas Insurance Law and Regulations
Who regulates what
The Texas Department of Insurance administers the Insurance Code. Adjusters are licensed under Chapter 4102 (all-lines license, biennial renewal, continuing education that includes ethics), must be licensed before handling claims, and may not misrepresent their authority. Residual markets also appear in questions: TWIA for coastal windstorm and the Texas FAIR Plan for property.
Two chapters to know cold
Chapter 541 (unfair or deceptive acts or practices) defines misrepresentation, false advertising, unfair settlement practices and bad faith; it is enforced by TDI and through private suits.
Chapter 542 (prompt payment of claims) sets the clock for first-party claims. The mnemonic is 15-15-5: acknowledge within 15 calendar days of receipt; accept or deny within 15 business days after receiving all items needed; pay within 5 business days after acceptance. The decision deadline may be extended 45 additional days with written notice stating the reason. Late payment exposes the insurer to 18% annual interest plus attorney's fees. Chapter 542A adds notice and proportionality rules in weather-related property litigation.
Conduct rules
An adjuster may not negotiate directly with a claimant represented by counsel, may not use a release to obtain unrelated information, must not alter claim records, and must refer suspected fraud to the insurer's SIU (criminal fraud provisions sit in Chapter 705).
Trap
"15 days" versus "15 business days." Acknowledgment runs on calendar days; acceptance or denial runs on business days.